Morning Headlines

Rio digs in on iron ore wars

Rio Tinto’s chairman, Jan du Plessis, has backed the company’s controversial iron ore expansions, saying the nation would merely have fewer exports at the same prices or lower if Rio caved in to pressure from Andrew Forrest and Western Australian Premier Colin Barnett. The Aus

State in worst debt blowout in 20 years

Western Australia is poised to fall short of its key financial benchmarks as debt levels surge and revenues dive. Its agency rating could also be hit for the second time in two years. The Fin

Shares, $A, bonds hit by rates fallout

Commonwealth Bank of Australia shares suffered their biggest rout since the 2008 financial crisis and the share market lost $40 billion of its value in a sudden reversal in bond, currency and stock markets that undermined Reserve Bank governor Glenn Stevens’ efforts to build confidence ahead of next week’s make-or-break federal budget. The Fin

Windfall for west angers premiers

Tony Abbott has handed Western Australia an extra $500 million to compensate for its falling share of the GST but the move has angered other states who argue the rescue package should have been linked to economic reform. The Aus

Big savings expected for cholesterol, depression and reflux pills

Some of the most commonly prescribed big-name drugs for cholesterol, depression and reflux will be up to $18.85 per script cheaper under a Federal Budget attack on medicine prices. The West

Vicstock venture pulls back from WA

Vicstock Grain and its Chinese backers have dramatically scaled back their cropping operations in the Wheatbelt three years after a $70 million spending spree on farmland. The West

The Australian Financial Review

Page 1: Commonwealth Bank of Australia shares suffered their biggest rout since the 2008 financial crisis and the share market lost $40 billion of its value in a sudden reversal in bond, currency and stock markets that undermined Reserve Bank governor Glenn Stevens’ efforts to build confidence ahead of next week’s make-or-break federal budget.

Woolworths’ first quarterly profit fall in 20 years, and the success of rival Coles, has shocked the company into abandoning some of the fattest profit margins on food and liquor in the world.

Page 4: New Greens leader Richard di Natale has given the government cause for optimism on the eve of its second budget by opening the door to supporting the indexation of petrol excise.

Page 6: Western Australia is poised to fall short of its key financial benchmarks as debt levels surge and revenues dive. Its agency rating could also be hit for the second time in two years.

Page 7: ACTU secretary Dave Oliver has promised the mobilisation of workers against Tony Abbott at the next federal election will be bigger than the union movement’s ‘‘Your Rights at Work’’ campaign in 2007.

Page 13: iiNet users who illegally downloaded Hollywood blockbuster Dallas Buyers Club are a step closer to receiving a letter for infringing copyright.

Page 23: Rio chairman Jan du Plessis says the company is ‘‘highly cognisant’’ of the pain being felt across the iron ore industry amid the price collapse and ‘‘derives no enjoyment’’ from it, but believes criticism of Rio’s expansion strategy is unjustified.

Big corporations are spending too much of their advertising budgets on ‘‘meaningless placements on frivolous sites,’’ according to News Corp chief executive Robert Thomson, as the global media company halved its profit.

Page 24: Construction materials group Boral has reaffirmed earnings guidance, saying additional property sales will offset the impact of bad weather on construction activity in the second half and flagged acquisitions in the United States markets where it hopes to break event his year.

The Australian

Page 1: Drug companies are on the brink of war with the Abbott government over proposed cuts in next week’s budget, which they warn will restrict access to new medicines.

Page 2: Tony Abbott has handed Western Australia an extra $500 million to compensate for its falling share of the GST but the move has angered other states who argue the rescue package should have been linked to economic reform.

Page 6: About 500 automotive workers employed by labour hire firms will be assisted by the South Australian government under a $7.3 million program amid concerns they will be retrenched once Holden shuts down operations in 2017.

Page 19: Rio Tinto’s chairman, Jan du Plessis, has backed the company’s controversial iron ore expansions, saying the nation would merely have fewer exports at the same prices or lower if Rio caved in to pressure from Andrew Forrest and Western Australian Premier Colin Barnett.

Page 20: APN News & Media chief executive Michael Miller, lauded for rescuing the once troubled media company in just two years, has pledged to continue the stunning transformation this year.

Page 21: Tigerair Australia is revamping its booking engine and changing the way staff interact with customers as it moves to build on recent improvements helping to boost its bottom line.

Page 24: ANZ chief Mike Smith has conceded the sector’s record low losses from bad debts have bottomed and the bank’s planned asset sales in Asia will not be easy, complicating the puzzle for investors probing the latest round of banking results.

Page 27: Property group Lend Lease is ramping up its pipeline of offshore apartment development opportunities as Australia’s rising land costs are making it less attractive to build locally.

Page 31: Copper has rallied strongly after a disastrous past few months, driven by supply disruptions, a falling US dollar and a pick-up in the Chinese economy.

The West Australian

Page 1: Some of the most commonly prescribed big-name drugs for cholesterol, depression and reflux will be up to $18.85 per script cheaper under a Federal Budget attack on medicine prices.

Page 3: Tenants are reaping the benefits of Perth’s highest rental vacancy rate in more than five years as agents scramble to fill more than 7000 empty homes across the metropolitan area.

Agriculture Minister Ken Baston has accused the RSPCA of lacking accountability and being driven by ideology.

Page 4: Some of the calls for WA to reform its economy are based on Eastern States “ignorance”, Colin Barnett said yesterday after Tony Abbott handed over $499 million for key road projects.

Six out of 10 WA health workers believe Government cutbacks in the past year have directly affected patient care, with a third blaming reduced staffing levels.

Page 5: The State Government is waving a financial carrot in front of potato growers in the hope they will agree to bring forward deregulation of the industry.

Page 6: Changes to the pension assets tests to be revealed today will result in about 326,000 wealthier retirees having their payments docked or losing them altogether.

The legality of ride-sharing service Uber will be tested after the first accused driver to be prosecuted appeared in Perth Magistrate’s Court yesterday.

Page 18: The State Government has failed thousands of Aboriginal people by not delivering safe water to dozens of remote communities, WA’s peak Aboriginal health body says.

Business: Vicstock Grain and its Chinese backers have dramatically scaled back their cropping operations in the Wheatbelt three years after a $70 million spending spree on farmland.

The State Government has taken a carrot and truncheon approach to resolving a $1.7 billion battle over the Bell litigation proceeds, leaving the way open for peace talks but also for the jailing of dissident creditors.

Carpenter Beef remains committed to finding a partner to finish building a major abattoir north of Perth, according to general manager John Berkefeld.

BHP Billiton chief executive Andrew Mackenzie says the company will unveil its new medium-term strategy for its slimmed-down core operations next week, after shareholders last night overwhelmingly voted in favour of spinning off noncore base metals and alumina assets into new company South32.

The Andrew Forrest-backed Vimy Resources has placed a $378 million tag on getting Mulga Rock, one of the State’s biggest uranium deposits, into production.